ASOS (ASC)

Sector:

Retailers

Index:

FTSE Small Cap

357.40p
   
  • Change Today:
    -8.60p
  • 52 Week High: 446.00
  • 52 Week Low: 333.40
  • Currency: UK Pounds
  • Shares Issued: 119.33m
  • Volume: 538,384
  • Market Cap: £426.50m
  • RiskGrade: 234

Barclays downgrades Asos to 'underweight'

By Michele Maatouk

Date: Tuesday 10 Sep 2024

LONDON (ShareCast) - (Sharecast News) - Barclays downgraded Asos to 'underweight' from 'equalweight' and cut the price target to 290p from 300p as it said the online fashion retailer was no longer just a refinancing story.
Barclays said that over the past three months, it felt that the biggest driver of Asos's equity story was around its ability to refinance.

"The Topshop transaction/re-fi is now done and removes some of the equity overhang/balance sheet risk into FY26. Our balance sheet analysis suggests that there is FY27/28 debt that could need refinancing, meaning earnings/FCF delivery in the mid-term is important," it said.

Barclays said the outlook remains challenged from a competitive standpoint - e.g. from Shein/Temu/Vinted - and sees a risk to consensus numbers both in FY25 and into the mid-term.

The bank said its slightly lower forecasts are now 22%/15% below Bloomberg consensus adjusted EBITDA for FY25/26, respectively.

"Additionally, with higher interest costs post re-fi and adjusting for royalty payments to the JV, we are now not forecasting positive FCF/earnings per share until FY27, which makes valuation more challenging, in our view.

"With the positive catalyst of the re-fi now played out, we think the focus shifts to Asos's fundamentals, and we view the risk/reward as skewed to the downside."

Amongst other commerce platforms in its EU Internet coverage, Barclays said it prefer names that have positive and accelerating growth with well-capitalised balance sheets and EPS/FCF valuation support in 2026, such as Deliveroo, which it rates at 'overweight'.

"We see Asos as a relative UW on that basis," it said.

At 1300 BST, Asos shares were down 3.8% at 418.80p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

ASOS Market Data

Currency UK Pounds
Share Price 357.40p
Change Today -8.60p
% Change -2.35 %
52 Week High 446.00
52 Week Low 333.40
Volume 538,384
Shares Issued 119.33m
Market Cap £426.50m
RiskGrade 234

ASOS Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
14.78% above the market average14.78% above the market average14.78% above the market average14.78% above the market average14.78% above the market average
47.62% above the sector average47.62% above the sector average47.62% above the sector average47.62% above the sector average47.62% above the sector average
Price Trend
23.31% below the market average23.31% below the market average23.31% below the market average23.31% below the market average23.31% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Income Not Available
Growth
63.84% below the market average63.84% below the market average63.84% below the market average63.84% below the market average63.84% below the market average
57.14% below the sector average57.14% below the sector average57.14% below the sector average57.14% below the sector average57.14% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 10
Sell 4
Strong Sell 1
Total 17
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

ASOS Dividends

No dividends found

Trades for 31-Oct-2024

Time Volume / Share Price
16:35 194,518 @ 357.40p
16:35 326 @ 357.40p
16:35 1,365 @ 357.40p
16:35 465 @ 357.40p
16:35 499 @ 357.40p

ASOS Key Personnel

CEO José Antonio Ramos Calamonte
CFO Dave Murray

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